EU invites financial industry to help shape tokenisation standards

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The European Central Bank (ECB), European Commission and European Securities and Markets Authority (ESMA) are seeking industry representatives to develop common standards for tokenised securities.

Applications for the European Tokenisation Standards Group (ETSG) are open until 27 November. EU industry associations, international institutions, private companies and fintech firms can apply. The group is due to start work in January 2027, while the three institutions will take part as observers.

Its task will be to establish technical and market standards for holding and settling tokenised securities across different distributed ledger technology (DLT) platforms. The rules should also ensure these systems can interact with existing financial infrastructure. The group aims to publish its first standards by early 2028.

The initiative forms part of Appia, the Eurosystem’s plan to develop a blueprint for Europe’s tokenised financial markets. The three institutions warned that incompatible standards could hinder adoption and said the group could recommend measures to encourage companies to follow its proposals.